bankshttp://www.wisebread.com/taxonomy/term/7825/all
en-US7 Ways to Pick the Bank That's Right for Youhttp://www.wisebread.com/7-ways-to-pick-the-bank-thats-right-for-you
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<p>With so many options, picking the right bank isn't always easy, leaving some people to pick a bank at random without giving much consideration to whether the institution meets their banking needs. (Personally, I chose Bank of America because of its abundance of locations across the country; I was tired of paying all those ATM fees from other banks while I was traveling). But while this a quick way to pick a bank, it doesn't guarantee the best banking experience. (See also: <a href="http://www.wisebread.com/9-good-reasons-to-choose-a-credit-union-instead-of-a-bank?ref=seealso">9 Good Reasons to Choose a Credit Union Instead of a Bank</a>)</p>
<h2>1. How Do You Prefer to Bank?</h2>
<p>Some people prefer going to an actual branch and speaking with a banker face-to-face, so they need a brick-and-mortar location. And if you travel a lot for either work or pleasure, you might need a big bank with locations in most of the country. When I first moved to New York City, I had to switch banks specifically for this reason. The bank I was with had very few branches in Manhattan, and I would have to take a 15-minute subway ride to deposit a $25 check.</p>
<p>On the other hand, if you're primarily banking within your community, and you prefer personable service and a hometown feel, a regional or community bank might provide a better banking experience.</p>
<p>Then again, maybe you can't remember the last time you stepped foot in a bank branch. Or perhaps you conduct most of your bank transactions electronically &mdash; thank goodness for mobile deposit, amiright? &mdash; so an <a href="http://www.wisebread.com/5-best-online-checking-accounts">online checking</a> or savings might be right up your alley.</p>
<h2>2. Check for FDIC Backing</h2>
<p>Even a big bank can shut its doors. Remember 2008? No matter the type of bank you choose, you need to be confident that your money is safe. Therefore, only bank with institutions that are insured by the FDIC. Your funds are protected up to $250,000 per account, so you know your cash is safe if the bank goes under.</p>
<h2>3. What Are the Hours and Locations?</h2>
<p>Choose a bank with locations and hours that work with your banking schedule and location, since you probably don't have time to drive 10 or 15 minutes out the way to find a branch. Also, factor in a bank's lobby and drive-up teller hours. When are you most likely to visit branches? If you prefer visiting a branch before or after work, a bank that opens before 9 a.m. and remains open until 6 p.m. might be a better fit. Or if you conduct most of your transactions on the weekends, a bank that offers Saturday or Sunday hours may be a better option.</p>
<h2>4. What Are the Fees and Interest Rates?</h2>
<p>If you're switching banks because you're fed up with high fees and low rates, you need to be more selective this time around. Besides, if you're looking to grow your money and reach a financial goal, the last thing you need are <a href="http://www.wisebread.com/12-annoying-bank-fees-and-how-to-avoid-them">fees eating away at your balance</a>. Speak with a banker or visit the bank's website for information on fees and rates.</p>
<p>Is there a monthly maintenance fee for checking and savings account? If so, is there a way to avoid this maintenance fee? Does the bank offer free overdraft protection? What's the returned check fee? What type of rates can you anticipate for a checking or savings?</p>
<h2>5. Does the Bank Offer a Variety of Investment Options?</h2>
<p>Regular savings accounts don't earn much interest, but with a certificate of deposit, a money market account, or interest checking, you'll usually get more bang for your buck. Does the bank offer these products?</p>
<p>Some small banks only have one type of checking or regular savings, whereas other banks offer a variety of accounts to accommodate different customer needs. Some banks offer accounts specifically for students or senior citizens. You should thus consider your banking needs and determine whether your chosen bank offers adequate options. The goal is finding a bank with accounts that match your savings or checking needs.</p>
<h2>6. Do You Need Other Financial Products?</h2>
<p>You may prefer using your bank for all your financial needs. So, when choosing a bank, make sure you inquire about other products. If you're planning on getting a mortgage or auto loan in the near future, you might choose a bank that offers these products as well. As an existing account holder, you might be eligible for better rates on loans and credit cards.</p>
<h2>7. What Services Are Important to You?</h2>
<p>Make a list of must-have banking services. Big banks offer a massive selection of services, such as online banking, bill pay, wire transfers, and direct deposit. These institutions usually have the resources to provide the most innovative products. But if you're working with a community or a regional bank, services might be limited. Visit the bank's website to make sure the institution offers the services you use.</p>
<p><em>How did you choose your bank? Did any other these suggestions factor in? Let me know in the comments below.</em></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/7-ways-to-pick-the-bank-thats-right-for-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1">
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<span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span>
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</div> </div><br/></br>Bankingbank feesbanksinterest ratesloansmoney managementThu, 11 Dec 2014 14:00:11 +0000Mikey Rox1267058 at http://www.wisebread.comCapital One 360 Black Friday Sale: Get $100 When You Open an Accounthttp://www.wisebread.com/capital-one-360-black-friday-sale-get-100-when-you-open-an-account
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<p><strong>NOTE: This deal has ended</strong></p>
<p>4 Days Only (November 28-December 1): For their Black Friday Special, get $100 when you open a fee-free 360 Checking Account (with a $250 minimum deposit) and make 5 Debit Card purchases or 5 CheckMate deposits or any combination of the two within 45 days. This is an interest bearing checking account!</p>
<p><a target="_blank" href="http://www.tkqlhce.com/click-2822544-12034567" rel="nofollow">Go here to learn more and sign up for a 360 Checking Account.</a></p>
<p>You can also grab $100 when you open a 360 Savings Account with a $1000 minimum deposit. The bonus starts earning interest on day 1, but you can&rsquo;t take it out for at least 30 days.</p>
<p><a target="_blank" href="http://www.kqzyfj.com/click-2822544-12034566" rel="nofollow">Go here to learn more and sign up for a 360 Savings Account.</a></p>
<p><strong> </strong>Sales ends 12/1!</p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/lynn-truong">Lynn Truong</a> of <a href="http://www.wisebread.com/capital-one-360-black-friday-sale-get-100-when-you-open-an-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2">
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<span class="field-content"><a href="http://www.wisebread.com/credit-unions-vs-banks-whats-the-difference">Credit Unions vs. Banks: What&#039;s the Difference?</a></span>
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<span class="field-content"><a href="http://www.wisebread.com/9-good-reasons-to-choose-a-credit-union-instead-of-a-bank">9 Good Reasons to Choose a Credit Union Instead of a Bank</a></span>
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</div> </div><br/></br>BankingbanksCapital Oneing directSat, 29 Nov 2014 05:21:26 +0000Lynn Truong1261418 at http://www.wisebread.comCapital One 360: A Competitive Banking Optionhttp://www.wisebread.com/capital-one-360-review
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<p>It's been a few years since <a target="_blank" rel="nofollow" href="http://www.tkqlhce.com/click-2822544-10478354?sid=mmarquit-959668">Capital One</a> bought ING DIRECT</a>, the popular bank that conducted most of its operations online. (See also: <a href="http://www.wisebread.com/7-banks-still-offering-free-checking-and-great-interest-rates">7 Banks Still Offering Free Interest-Bearing Checking Accounts</a>)</p>
<p>For most people looking to centralize their banking and find competitive rates, Capital One 360 is a viable option. Capital One 360 makes it easy to access all of your accounts, including your investment accounts, from your account summary.</p>
<h2>Features and Benefits of Capital One 360</h2>
<p>Capital One 360 offers a variety of banking products and services.</p>
<h3>360 Savings</h3>
<p>This is the classic account that started it all. There are no fees, no minimum requirements, and no catches. Right now, the yield is <a href="http://www.tkqlhce.com/click-2822544-10698040?sid=mmarquit-959668" rel="nofollow" target="_top"><script src="https://home.capitalone360.com/js/accounttype.js"></script>
<script>document.write(type_3000_apy);</script></a>% APY<img src="http://www.lduhtrp.net/image-2822544-11665596" width="1" height="1" border="0"/>, which is reasonably competitive, especially when you consider that there are no minimums and no fees. It&rsquo;s easy to link your account to other banks and set up automatic transfers to make saving easy.</p>
<p><a href="http://www.tkqlhce.com/click-2822544-10698040?sid=mmarquit-959668" rel="nofollow" target="_top"><strong>Click here to apply for a 360 Savings Account today!</strong></a></p>
<h3>Kids Savings Account</h3>
<p>My son&rsquo;s savings account at Capital One 360 kicks the crap out of the 0.20% he was getting at the local credit union. It&rsquo;s easy to monitor the account from your own dashboard and to teach your child the value of saving early on.</p>
<h3>360 Checking</h3>
<p>You can open a checking account with Capital One 360 and earn a yield on the balance. Current yields range from 0.20% to 0.80%, depending on how much money is in the account. There are 2,000 Capital One ATMs in addition to 38,000 fee-free Allpoint ATMs account holders can use.</p>
<ul>
<li>This account has no fees and no minimums, and you can use P2P Payments to send money to family and friends for free.<br />
&nbsp;</li>
<li>Bill pay is free, even when you have paper checks sent.<br />
&nbsp;</li>
<li>You can use CheckMate to deposit checks remotely, and the account comes with overdraft protection.<br />
&nbsp;</li>
<li>If you overdraw your account, you won&rsquo;t end up paying a fee. Instead, you are just charged an interest fee (currently 11.25%) on the overdraft until it&rsquo;s paid off.</li>
</ul>
<p><a target="_blank" rel="nofollow" href="http://www.tkqlhce.com/click-2822544-10478354?sid=mmarquit-959668"><strong>Click here to apply for a Capital One 360 checking account now.</strong></a></p>
<h3>MONEY (Teen Checking)</h3>
MONEY is an account created specifically for the teen user. Teach your teen to manage her money with this no fee and no minimum account that earns interest. </p>
<h3>CDs</h3>
<p>The yields on the CDs from Capital One 360 are not as competitive as they could be, ranging from 0.40% to 0.90%. You can choose your term, and you can also choose when you want to receive your interest payments.</p>
<h3>Mortgages</h3>
<p>The Capital One 360 mortgage offers fixed and variable rate options for a new purchase or a refinance. The closing costs are very straightforward, and right now the rates are still quite low. You can also get a home equity loan with a variable rate starting at 4.0%, or lock in a slightly higher rate for 15 years.</p>
<h3>ShareBuilder</h3>
<p>With ShareBuilder you can invest in stocks, mutual funds, and ETFs, as well as trade options. There is no account minimum, and you can choose between paying a $12 monthly fee and getting a lower price on trades, or just opening the account with the Basic version. I have this version, in which regular purchases are $9.95 a transaction. However, since I have an automatic investment plan set up, I only pay $4 a transaction. It&rsquo;s easy, straightforward, and the pricing is competitive with the automatic investing.</p>
<h3>IRAs</h3>
<p>You can choose to open a savings IRA, or you can use ShareBuilder to open an investment IRA. With the savings IRA, you have all the money in CDs and savings accounts; you need to go the ShareBuilder route if you want to invest in stocks, mutual funds, or ETFs. You can also rollover your 401(k) into an IRA from Capital One 360.</p>
<h3>Business Account</h3>
<p>Capital One 360 also offers business banking products. You can open a business savings account, or a business CD. The current yield on the business savings account is lower than what you get with personal savings, though.</p>
<p>You can also use the ShareBuilder 401(k) to set up a retirement plan for your small business. It&rsquo;s fairly easy to set up, and you can offer this benefit to your employees.</p>
<h3>Bottom Line</h3>
<p>Overall, <a href="http://www.tkqlhce.com/click-2822544-10478354?sid=mmarquit-959668" rel="nofollow" target="_blank">Capital One 360</a> is a viable competitor. The products offered remain fairly competitive. Additionally, the low-fee, low-hassle structure of the bank makes it easy to open accounts, and avoid watching your wealth erode due to hidden fees and complicated requirements.</p>
<p><a href="http://www.tkqlhce.com/click-2822544-10478354?sid=mmarquit-959668" rel="nofollow" target="_blank"><strong>Click here to apply now</strong></a></p><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/miranda-marquit">Miranda Marquit</a> of <a href="http://www.wisebread.com/capital-one-360-review">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3">
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</div> </div><br/></br>BankingbankingbanksCapital Oneing directFri, 28 Nov 2014 08:35:15 +0000Miranda Marquit959668 at http://www.wisebread.com9 Good Reasons to Choose a Credit Union Instead of a Bankhttp://www.wisebread.com/9-good-reasons-to-choose-a-credit-union-instead-of-a-bank
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<p>I am huge believer in credit unions.</p>
<p>When I first arrived to the U.S., I only had my savings and my dreams of completing a MBA degree. As an immigrant I didn't have a credit history or a U.S. bank account. This meant that many big names in banking were hesitant to give me a chance. This made qualifying for a credit card or becoming eligible for a car loan very challenging. Thanks to a local credit union, I was not only able to achieve these milestones, but also build my credit history and become financially independent. (See also: <a href="http://www.wisebread.com/how-to-switch-banks?ref=seealso">How to Switch Banks</a>)</p>
<p>Here are the 10 good reasons to choose a credit union instead of a bank.</p>
<h2>1. Credit Unions Have Owners</h2>
<p>While banks have clients, credit unions have part owners or members. When you open an account, your account is actually a share and provides you voting rights. Instead of a board of directors, decisions are made by vote from shareholders. Each member has a voice in how operations are run, no matter how small her share may be.</p>
<p>On top of this, credit unions are not run for profit. Instead these institutions have the ultimate goal of providing their members better rates on loans and financial products. When a credit union makes a profit, it is used to provide better opportunities to the community that it serves.</p>
<h2>2. Accounts Have Fewer and Lower Fees</h2>
<p>When I was researching checking and savings accounts at banks, I was shocked at the fees they charged. Turns out that the average checking account from a bank has <a href="http://www.marketwatch.com/story/average-checking-account-has-30-fees-2013-08-08">30 different fees</a>, such as maintenance and excess withdrawal fees. Some banks have up to 50 unique fees for checking accounts!</p>
<p>Unlike big banks, credit unions aim to minimize account fees. For example, credit unions are well known for not charging monthly maintenance fees, which are about $12 to $14 at big name banks.</p>
<h2>3. Clerks Talk With You</h2>
<p>This is a major advantage of working with a credit union. Credit unions have a much smaller client base, and they work very hard to keep them happy.</p>
<p>For example, on my first year I miscalculated an incoming paycheck and wrote a check that was $10 over my bank balance. Instead of charging me an overdraft fee, a rep from my credit union gave me a call and informed me of the situation. He asked me if I could make a deposit to cover the $10 difference by 11 a.m. Also, my credit union gave me a one-time overdraft fee waiver because they understood that it was a rookie mistake.</p>
<p>Every time that I need help I know that I can count on talking over the phone with an actual person that works at my credit union &mdash; no redirects to distant call centers. Some clerks even know me by name after so many years. This gives me the confidence of handling matters over the phone and knowing that any issue can be resolved.</p>
<h2>4. Lower Financing Costs and Higher Payouts</h2>
<p>Data from the National Credit Union Administration (NCUA) consistently shows that <a href="http://www.ncua.gov/DataApps/Pages/CUBNKMain.aspx">credit unions outperform banks</a>. For example, in <a href="http://www.ncua.gov/DataApps/Documents/CUBNK201403.pdf">March 2014</a>:</p>
<ul>
<li>Credit unions had a national average rate of 4.75% for home equity loans, while banks had a 5.33% average rate<br />
&nbsp;</li>
<li>A $2,500 money market investment would have paid an average 0.16% at credit unions and an average 0.12% at banks<br />
&nbsp;</li>
<li>A $10,000 5-year CD yielded a national average 1.32% at credit unions and 1.14% at banks</li>
</ul>
<h2>5. Access to Financing for Low-Income Individuals</h2>
<p>Credit unions do not only offer cheaper financing options, but also provide low-income or financially distressed individuals a chance to qualify for financing. Here are some examples:</p>
<ul>
<li>Virginia State employees, who are paid on a monthly or semi-monthly basis and have held employment for over 12 years, are eligible for <a href="http://www.dhrm.virginia.gov/vaemploan/">loans in $100 increments</a> through the Virginia Credit Union.<br />
&nbsp;</li>
<li>Since 2001, the <a href="http://www.ncsecu.org/">North Carolina State Employee's Credit Union</a> has helped over 111,800 of its members to borrow $1.5 billion through $500 salary advance loans at a 12% rate payable within a month. The program enjoys a default rate of less than 0.1%.<br />
&nbsp;</li>
<li>During the 2009-2010 state employee furlough, the <a href="http://www.hsfcu.com/">Hawaii State Federal Credit Union</a> provided a special rate for those members affected by the furlough to borrow up to $5,000. The credit union continues to offer this assistance to members affected by <a href="http://www.hawaiireporter.com/hawaii-state-federal-credit-union-helps-members-in-need/123">federal budget cuts and furloughs</a>.</li>
</ul>
<h2>6. Friendly Credit Card Terms</h2>
<p>Credit unions are well-known for providing some of the most attractive credit cards. Some of the features include:</p>
<ul>
<li>No annual fees.<br />
&nbsp;</li>
<li>No introductory rates.<br />
&nbsp;</li>
<li>Annual percentage rates start at 7.75%. (The national average for credit union issued credit cards is 11.56%, according to the NCUA.)<br />
&nbsp;</li>
<li>State Employee's Credit Union: <a href="https://www.ncsecu.org/Cards/Credit.html">7.75%</a>.<br />
&nbsp;</li>
<li>University of Hawaii Federal Credit Union: <a href="https://www.uhfcu.com/?CABINET=Main&amp;DRAWER=Products+and+Services&amp;FOLDER=Loans+and+Lines&amp;SubFolder=Credit%20Card">8.50%</a>.<br />
&nbsp;</li>
<li>The same APR applies to purchases, cash advances, and <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?ref=internal">balance transfers</a>.<br />
&nbsp;</li>
<li>Most credit union members enjoy the same APR, regardless of <a href="http://www.wisebread.com/the-5-best-secured-credit-cards?ref=internal">credit score</a>.<br />
&nbsp;</li>
<li>No interest periods are often provided during the summer, December holidays, and special occasions.<br />
&nbsp;</li>
<li>Cash advances can be deposited directly into your checking account at no extra charge.</li>
</ul>
<p>My very first credit card was through my credit union and I still keep it until this day. I have not been able to find a credit card that matches the great terms that my credit union offers. (See also: <a href="http://www.wisebread.com/the-penfed-promise-visa-card-offers-a-way-to-escape-your-big-bank?ref=seealso">The PenFed Promise Visa Card Offers a Way to Escape Your Big Bank</a>)</p>
<h2>7. Car Loans</h2>
<p>When it comes to providing car loans, credit unions have the local advantage over large banks.</p>
<ul>
<li>As of March 2014, a <a href="http://www.ncua.gov/DataApps/Documents/CUBNK201403.pdf">new car 48-month loan</a> stood at a national average of 2.69% at credit unions, and of 4.94% at banks. For used cars 48-month loans, the average rate was 2.87% for credit unions was 5.48% for banks.<br />
&nbsp;</li>
<li>They often run car loan pre-approval events, so that you have a pre-approval letter from your credit union before you visit a car dealership. Shop with confidence by being 100% sure about your financing.<br />
&nbsp;</li>
<li>Credit unions often partner with local dealerships for giveaways, such as gift cards for gas stations. For example, forms may be available at your credit union branch to take with you the next time you visit participating dealerships. You can receive free gas cards just for window shopping at a car dealership. The dealer fills out the form to confirm your visit and sends it back to the credit union. A couple days later a gas card is mailed to you.<br />
&nbsp;</li>
<li>If your credit union has a gas card partnership with a local dealership, it may also provide an even bigger gas card for financing a new car purchase through your credit union.<br />
&nbsp;</li>
<li>The more, the merrier: Some car dealerships may run &quot;credit union days.&quot; At these events, you can browse financing offers from other credit unions, and, if you find a better one, inquire if you're eligible.</li>
</ul>
<h2>8. Private Lines of Credit for College Students</h2>
<p>Most credit unions partner with <a href="http://www.studentchoice.org">Credit Union Student Choice</a> to offer a private line of credit to supplement college education costs. The main advantages from these private student loans are:</p>
<ul>
<li>Zero fees: no origination, application, or prepayment fees.</li>
<li>Lower interest rates than comparable private lines of credit.</li>
<li>Flexible repayment plans including school deferment.</li>
<li>Loans start at $1,000.</li>
</ul>
<p>Almost 2,000 colleges across the U.S are eligible for loans from Credit Union Student Choice. To apply you must be enrolled at least part-time in a four year degree program at a participating public or private college.</p>
<h2>9. Christmas Savings Accounts</h2>
<p>Several people end up with a financial hangover from the Black Friday and Christmas &quot;deals&quot; because they rack up their store and credit cards. Shopping for gifts on plastic is a dangerous habit. (See also: <a href="http://www.wisebread.com/best-credit-cards-for-the-holidays?ref=seealso">Best Credit Cards for the Holidays</a>)</p>
<p>While almost no banks run &quot;Christmas Clubs&quot; any more, nearly 72% of credit unions do. Christmas Clubs are special savings accounts that encourage saving for the holidays. The main objective of these accounts is to stash this money away from yourself and make the funds grow until the first days of the holiday season. By saving throughout the year with a Christmas Club, you have a higher chance of actually saving and decreasing your credit card use.</p>
<p>On top of that, most credit unions do something fun when they deliver your Christmas Club check. If you're having a hard time saving and love anything Christmas-related, then this may be the right savings vehicle for you!</p>
<p><em>What are other good reasons to choose a credit union instead of a bank?</em></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/9-good-reasons-to-choose-a-credit-union-instead-of-a-bank">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4">
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</div> </div><br/></br>Bankingbankscredit cardscredit unionsWed, 16 Jul 2014 16:36:36 +0000Damian Davila1158334 at http://www.wisebread.com5 Things Your Teen Needs (or Doesn’t Need) in a Bank Accounthttp://www.wisebread.com/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account
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<p>Teens taught to save from an early age may gain an advantage over kids with no parental direction concerning finances. How you handle your money matters will have a <a href="http://www.kiplinger.com/article/saving/T065-C000-S001-teach-kids-the-value-of-money.html">strong impact on your child's view of money</a> and the values they hold into adulthood. While many people across the county are still struggling to put away cash from each paycheck they receive, teens that learn healthy financial habits will likely struggle less with their money management. (See also: <a href="http://www.wisebread.com/the-first-payday-helping-your-teen-understand-money">Helping Your Teen Understand Money</a>)</p>
<p>In addition to prioritizing savings, teens also should start learning the basic fundamentals of personal money management such as being responsible for balancing their checkbook and paying any financial responsibilities on time. As a teen's financial responsibilities increase, they will need to establish a savings account and a checking account. (See also: <a href="http://www.wisebread.com/5-best-prepaid-debit-cards">Top 5 Prepaid Debit Cards</a>)</p>
<p>Here are 5 things every teen needs in a bank account.</p>
<h2>1. Money, Money, and More Money</h2>
<p>Opening a bank account with or for your teen isn't enough to teach a savings lesson. Parents would be wise to sit down with their child and talk about the benefits of savings and the best methods for hanging on to their cash.</p>
<p>Ideally, establishing a <em>must-follow</em> rule of savings, such as 10% of all money they earn or receive, will help a teen get into the habit of heading to the bank first rather than the mall. The savings account should never be touched for any purpose so it can be allowed to grow and earn interest for long-term financial stability. Checking accounts will need to have sufficient amounts of cash for checks written. (See also: <a href="http://www.wisebread.com/10-tips-from-a-financially-savvy-teen">Advice From a Financially Savvy Teen</a>)</p>
<h2>2. More Benefits Than Fees</h2>
<p>Banks have been <a href="http://www.consumersdigest.com/special-reports/license-to-steal">capitalizing on the many fees</a> they are creating to keep making huge profits. When it comes to a new account for teens, it is best to shop around at different banks rather than just head to your preferred branch. Your teen should have a bank account that doesn&rsquo;t charge a ton of excessive fees for administration or transactions. Be sure to review the associated fees with your teenager.</p>
<h2>3. Avoid Flashy Incentives</h2>
<p>There is still a lot of competition in the banking industry, so it is important for teens to understand what makes an account suitable for them. Banks often offer incentives that seem great on the surface but could leave the customer dissatisfied with the other account terms. Teach your teen to look past the <a href="http://www.cnbc.com/id/100774142">free stuff and focus on the bank's conditions</a>, fees, and limitations. They should find a bank that offers low-cost or free accounts that do not limit transactions including at the ATM and through checking accounts.Take time to read the fine print with your teenager and if you don't understand the terms, visit with the bank's manager for an explanation.</p>
<h2>4. Accessible Banking</h2>
<p>There is a good mix of brick and mortar banks and online banks offering great deals on bank accounts. However, some online banks or smaller institutions are not as accessible as a teen needs them to be. If they plan to use an ATM card for withdrawals or need to make cash deposits, they will need to be able to access a bank in person. Consider the accessibility of both the bank and its ATM locations when helping teens make a decision. If you anticipate in-person visits to the bank to cash or deposit checks, an online bank may not make as much sense as opting for a bank with a local branch.</p>
<h2>5. Seek Out Banks With Educational Resources</h2>
<p>Since your teen is just entering the world of personal finance, finding a bank that also offers free resources for financial education is a wise move. Many of the major banks offer online tools and guides for learning the basics of money. As parents can find it difficult to get lessons across to their kids, online tutorials can help close the gap in learning. Phone apps and other technologies offered by banks can be a very effective teaching tool for today's teens. (See also: <a href="http://www.wisebread.com/the-best-money-tools-and-toys-for-every-age-group">Money Tools and Toys for Every Age Group</a>)</p>
<ul>
<li>Wells Fargo offers <a href="https://www.wellsfargo.com/checking/teen/">Teen Checking (SM)</a> that include parents in alert messages and account management.<br />
&nbsp;</li>
<li>Bank of America offers a lot of free information on their <a href="https://www.bankofamerica.com/student-banking/solutions-for-students.go">Student Bank Accounts and Solutions</a> page.<br />
&nbsp;</li>
<li>Chase also offers a <a href="https://www.chase.com/checking/student-checking">High School Checking Accounts</a> program for teens to help them manage their money.</li>
</ul>
<p><em>Have you set up a savings or checking account for your teen (or younger child)? Has it been educational?</em></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tisha-tolar">Tisha Tolar</a> of <a href="http://www.wisebread.com/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5">
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</div> </div><br/></br>Bankingbankschecking accountssavings accountsteen savingWed, 18 Sep 2013 09:36:07 +0000Tisha Tolar986755 at http://www.wisebread.com6 Reasons to Love Your Bankhttp://www.wisebread.com/6-reasons-to-love-your-bank
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<p>No one likes banks these days. The media is telling us that <a target="_blank" href="http://www.wisebread.com/banks-manipulate-your-transactions-may-charge-you-1750-overdraft-fee">they are charging more fees</a> and are to blame for the financial crisis. But the reality is that now is the time to love your bank more than ever.</p>
<p>Imagine that a security company guarded your house around the clock. If a burglar ever broke in and stole something valuable, like the family silver or your TV, your security company would replace them, no questions asked. You can come and go into your house as you please and even contact the company guarding your house around the clock &mdash; in person, by email, by phone. And sometimes, the company will even pay you for the privilege of guarding your house. (See also: <a target="_blank" href="http://www.wisebread.com/think-twice-before-ditching-your-current-bank">Think Twice Before Ditching Your Current Bank</a>)</p>
<p>This is similar to what a bank does for your money.</p>
<h3>1. Your Bank Keeps Your Money Completely Safe</h3>
<p>The nuts and bolts of banks, as the average consumer uses them, is that you give your money to your bank, and your bank protects it. The very best reason to use a bank is that you don't have to worry about your money getting lost or stolen. Keeping it under the mattress is not the best bet. In the unlikely event your bank fails, the government insures your deposits up to $250,000. If you like any other company that provides similar services (insurance, for instance), then you should like your bank.</p>
<h3>2. Your Bank Provides Amazing Services</h3>
<p>Besides just protecting your money, your bank also provides amazing services. Your bank gives you the ability to pay for something nearly anywhere you want by <a target="_blank" href="http://www.wisebread.com/is-a-prepaid-debit-card-really-cheaper-and-better-than-a-bank-debit-card">using a debit card</a>. You don't have to carry around cash (and risk it getting lost or stolen). If you need or prefer cash, you can use an ATM to retrieve your money on nearly any street corner. And with ATMs you can even deposit checks, so you don't have to go to the hassle of waiting in line.</p>
<p>But let's say you want to talk with a real person about your money. You can go to a bank branch and get personal service. You can sit down with a banker and have them help you customize your accounts. Just today, I walked into a branch of my bank, and within two minutes a banker helped me close a business account that I no longer needed. He was extremely friendly and asked me if there was anything else he could do to help me. Previously a banker set me up with a permanent fee-waiver for my ATM card. That's great service.</p>
<p>Your bank likely allows you to transfer money online, get your account balance from anywhere, and track your spending and savings. Depending on the type of account you may even earn interest on the money you keep at your bank. And these are just the basic services your bank likely provides. Every day banks are rolling out more features &mdash; like banking apps &mdash; all for free.</p>
<h3>3. You Can Often Get All of a Bank's Services for Free</h3>
<p>All of the services I listed above? Many banks will give these services to you for free. Even if your <a target="_blank" href="http://www.wisebread.com/that-sneaky-bank-almost-got-me">account is listed as having a fee</a>, walk into your bank and ask a banker if there is a way to waive it. Often, if you &quot;bundle&quot; services, your bank will waive the monthly charge. For example, see about opening a deposit account, setting up recurring transfers, or enabling direct deposit. Or maybe it's worth refinancing your home with a mortgage from your bank.</p>
<h3>4. If You're Paying a Fee, You're Likely Getting Great Side Benefits</h3>
<p>If you are paying a fee on your account, you are likely getting some additional benefits. Some fee checking accounts pay interest, provide free checks, or give you a cash rebate for the amount spent on your debit card. (If you're paying a fee and aren't getting any benefits, ask how to get a fee waiver or see point six below.)</p>
<h3>5. Banks Are Subject to More and More Governmental Scrutiny</h3>
<p>Every day, banks become subject to more and more governmental scrutiny. Some of these regulations may be warranted, but for the most part they are harming the community bank down your street. (That's the bank where not only will they be more likely to know your name, but you're most likely to get a loan if you want to start a business.) And these regulations are costing banks money to comply with. But banks are still passing very few of these costs onto the average consumer. And that's another great reason to love your bank.</p>
<h3>6. You Can Change Banks</h3>
<p>If you don't love your bank, you should switch. It's that simple. Every other bank wants you as a customer and you should make the most of that situation. If you don't feel that your bank is giving you the services and support you need, find another bank. Consider an online-only bank or the community bank down the street. There are thousands of banks. Think of the services you need, and find a bank that meets your criteria. If you were trusting the safety and security of your home to a company, you'd spend some time ensuring that it's the best fit for you. Do the same with your money and find a bank that you love.</p>
<p><em>What's great about your bank?</em></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/elizabeth-lang">Elizabeth Lang</a> of <a href="http://www.wisebread.com/6-reasons-to-love-your-bank">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6">
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</div> </div><br/></br>Bankingbankschecking accountsdebit cardsonline bankingsavings accountsMon, 27 May 2013 10:24:33 +0000Elizabeth Lang973807 at http://www.wisebread.comCredit Unions vs. Banks: What's the Difference?http://www.wisebread.com/credit-unions-vs-banks-whats-the-difference
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<p>If you don't belong to a credit union &mdash; or even if you do &mdash; you may not be aware of the many ways in which they differ from banks. Although banks and credit unions both provide similar services, each offers different types of benefits for account holders and borrowers. Let's take a look at the characteristics of a credit union versus a bank and learn how to determine which one is best for you. (See also: <a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a>)</p>
<h2>Credit Unions 101</h2>
<p>A credit union is a cooperative financial institution in which individuals pool their money to provide loans and services to other members. In the United States, credit unions are nonprofit entities, and their cooperative structure is designed to ensure fair dealing. Additionally, anyone who belongs to a credit union must first qualify to join under a particular institution's field of membership.</p>
<p><strong>Why Join a CU?</strong></p>
<p>Because the users and members of the cooperative are the same people, the idea behind credit unions is that they provide services that are tailored to the people who use them, rather than to driving profit for the institution. In addition, each member of a credit union, no matter how small his or her holdings, often has a voting share in the credit union's affairs. This ensures the organization's policies match up with what members really want. In practice, credit unions offer the same services as banks and are subject to federal regulations that are similar to those under which banks operate. However, because of the democratic organization of these institutions, they are often able to offer higher interest rates and lower fees than their corporate peers. Also, because credit unions are smaller &mdash; and often local &mdash; institutions, they may offer more personal customer service.</p>
<p><strong>The Downsides to Credit Unions</strong></p>
<p>That said, there are also drawbacks to banking with a credit union, which are largely related to these institutions' smaller size. This includes fewer branches and ATMs, as well as a lack of or lower-quality online banking options. In addition, although service at a credit union may be more personal, it will not be as robust as the 24-hour customer service many big banks provide.</p>
<h2>The Big Banks</h2>
<p>While it's important to compare rates and fees between banks and credit unions when you're looking to take out a loan or open a new account, what banks can provide over credit unions is more...of everything. Banks are often much larger than credit unions, which allows them to offer much more variety to account holders. Generally, a larger chain or national bank will have more loan and account options. Plus, virtually all major banks offer excellent online banking and investment options, and as mentioned previously, a very robust customer service department that can be reached at any time of the day.</p>
<h2>Are Credit Unions or Banks Better?</h2>
<p>If you're looking for a loan or want to buy a certificate of deposit, it definitely makes sense to shop around and include credit unions in your search. Whether you settle on a bank or a credit union depends on your needs and what you value. For those who are looking for a checking and savings account, a few money market investments and a simple <a title="CitiMortgage Told Me to Default on My Loan" href="http://www.wisebread.com/citimortage-told-me-to-default-on-my-loan-if-i-want-their-help">loan</a> or two, a credit union may suit them just fine. Those with more high-powered portfolios may require the horsepower a bigger bank can provide, like these high-yield savings and money market accounts from <a onClick="_gaq.push(['_trackEvent', 'afclick', 'contenttext', 'bank_capone360']);" target="_blank" href="http://www.wisebread.com/redir/6787875">Capital One 360</a>.</p>
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<div class="field-label">Guest Post Blurb:&nbsp;</div>
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<p>This is a guest post from <a href="http://www.newyorkbankingrates.com/">NewYorkBankingRates.com</a>, a site that compares interest rates from New York banks and credit unions to provide residents with the best financial products in the city.</p>
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<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/user/0"></a> of <a href="http://www.wisebread.com/credit-unions-vs-banks-whats-the-difference">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-7">
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<div class="views-field-title">
<span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span>
</div>
</li>
<li class="views-row views-row-2 views-row-even">
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</div>
</li>
<li class="views-row views-row-3 views-row-odd">
<div class="views-field-title">
<span class="field-content"><a href="http://www.wisebread.com/capital-one-360-review">Capital One 360: A Competitive Banking Option</a></span>
</div>
</li>
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<span class="field-content"><a href="http://www.wisebread.com/six-options-if-youre-underwater-on-your-mortgage">6 Options if You&#039;re Underwater on Your Mortgage</a></span>
</div>
</li>
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<span class="field-content"><a href="http://www.wisebread.com/citimortage-told-me-to-default-on-my-loan-if-i-want-their-help">CitiMortgage Told Me to Default on My Loan</a></span>
</div>
</li>
</ul>
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</div> </div><br/></br>Bankingbank loansbankscredit unionsWed, 31 Aug 2011 09:48:19 +0000678787 at http://www.wisebread.comNew Tools for the Unbankedhttp://www.wisebread.com/new-tools-for-the-unbanked
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<p>Until just the past few years, lack of access to the banking system has been an expensive burden on the poor. Just recently, a surge in new financial products make it a lot less expensive to be unbanked. (See also <a href="http://www.wisebread.com/making-direct-deposit-safe-for-the-garnished">Making Direct Deposit Safe for the Garnished</a>)</p>
<p>It used to be that you either used the banking system, or you paid through the nose to buy individual banking services (3% or more at a check cashing store, $1 or more for a money order, outlandish rates for a payday loan).</p>
<h2>The Unbanked</h2>
<p>Although the barrier to using the banking system is usually described in terms of poverty, merely having little or no money doesn't need to block access. It's really a cluster of related problems that add up to make using conventional banking services so difficult and expensive that people end up choosing to do without:</p>
<ul>
<li>No cash to keep a minimum balance</li>
<li>No regular paycheck to have direct deposited to qualify for a no-fee account</li>
<li>Not living in a neighborhood with a local bank</li>
<li>Not speaking (or reading) English well enough to use banking services</li>
<li>Not having the skills to maintain a check register</li>
<li>Having a history of bounced checks or unpaid debts</li>
<li>Working during banking hours</li>
</ul>
<p>Any two or three of those issues can put the regular banking system out of reach (although someone with a little financial savvy can almost always <a href="http://www.wisebread.com/avoid-bank-fees">find a cheap way into the banking system</a>).</p>
<p>But if the way you live your financial life makes the banking system a poor fit, there are now some alternative financial service providers that can be cheaper than regular banks.</p>
<h2>The New Prepaid Cards</h2>
<p>These alternatives are organized around a <a href="http://www.wisebread.com/5-best-prepaid-debit-cards">prepaid debit card</a>. Instead of cashing a check, they put the money onto your card. This is just as good for you (you can get cash at an ATM) and cheaper for them.</p>
<p>These cards do charge fees &mdash; a lot of them. There's often a fee to get a card, a fee to add money, a fee to use an ATM, a fee to check your balance, a monthly fee, etc. But the fees are clear (rather than mysterious the way bank fees can seem to someone whose parents didn't teach them how to use a bank). And they're low &mdash; a careful user can keep the monthly charges at just a few dollars (less than they'd pay for a bank account).</p>
<p>Further, we're about to see another step down in these fees. That's because the new cap on debit card swipe fees has an exception for reloadable debit cards &mdash; provided the cards have no overdraft charges and allow at least one no-fee ATM withdrawal per month.</p>
<p><span style="font-size: 13px; line-height: 1.7em;">I still think the banking system is the better choice for most people. But for everyone else, the next generation of prepaid cards will provide most of the banking services they need, and do it with lower fees than ever before.</span></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/new-tools-for-the-unbanked">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-8">
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<span class="field-content"><a href="http://www.wisebread.com/credit-cards-vs-debit-cards-a-comprehensive-comparison">Credit Cards vs. Debit Cards: A Comprehensive Comparison</a></span>
</div>
</li>
<li class="views-row views-row-2 views-row-even">
<div class="views-field-title">
<span class="field-content"><a href="http://www.wisebread.com/the-overdraft-protection-racket-why-banks-want-you-to-overdraw-and-how-you-can-get-your-money-back">The Overdraft Protection Racket: Why Banks Want You To Overdraw, And How You Can Get Your Money Back.</a></span>
</div>
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<li class="views-row views-row-3 views-row-odd">
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<span class="field-content"><a href="http://www.wisebread.com/making-direct-deposit-safe-for-the-garnished">Making direct deposit safe for the garnished</a></span>
</div>
</li>
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<span class="field-content"><a href="http://www.wisebread.com/everything-you-should-know-about-getting-a-credit-card-but-didn-t-have-a-clue-to-ask">Everything you should know about getting a credit card but didn’t have a clue to ask</a></span>
</div>
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<div class="views-field-title">
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</li>
</ul>
</div> </div>
</div> </div><br/></br>BankingCredit Cardsbanksdebit cardsfeesunbankedWed, 15 Jun 2011 10:24:21 +0000Philip Brewer580992 at http://www.wisebread.comThe Benefits and Drawbacks of Credit Unionshttp://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions
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<p>It's difficult not to be annoyed by traditional banks. Many financial institutions just don't have incentives to provide better and less expensive services. Although some have begun to adapt to changing needs and desires in the industry, most brick-and-mortar banks still don't feel threatened. Because banks aren't meeting the needs of some consumers, more people are turning to credit unions as an alternative. (See also: <a href="http://www.wisebread.com/beating-bank-fee-increases">Beating Bank Fee Increases</a>)</p>
<p>A good friend of mine, a business owner, shared with me his concern about his finances. Thanks to his success, he has cash that he wants to be available for his business's leaner times, and he was unsatisfied with the savings rates he could find &mdash; even with <a href="http://www.wisebread.com/5-best-online-savings-accounts">high-yield online savings accounts</a>. We were able to find a credit union that not only offered better interest rates for savings, but allowed him to qualify for a business line of credit at a low interest rate.</p>
<p>These pricing benefits are just some of the advantages of working with a credit union. Any type of banking institution has benefits and drawbacks. Here are the issues that you need to consider before ditching your current national bank and joining a credit union.</p>
<h2>Advantages of Credit Unions</h2>
<p><strong>Customers are owners.</strong></p>
<p>The executive management of any company must answer to its owners. With a publicly-traded banking institution, shareholders care about only one thing: making money. In these companies, management often makes decisions that benefit the shareholder but inconvenience the customer. Shareholders might be happy when a bank decides to charge a new fee to increase revenue (and as a result, the stock price), but those who use the bank's services do not want additional fees.</p>
<p>With credit unions, the set of owners and the set of customers are one and the same. All decisions should benefit everyone.</p>
<p><strong>Credit unions are non-profit.</strong></p>
<p>Non-profit status means that more of the profits are shared with the owners/customers. That doesn't mean that the institutions can't earn a profit; any business needs to earn money to survive. The difference is that there isn't a pressure to find ways to make money off the customers. Additionally, credit unions benefit from exemption from federal tax, and that saved expense help more of the unions' revenue to be put to work.</p>
<p><strong>There are fewer fees and higher savings rates.</strong></p>
<p>As a result of the advantage listed so far, credit unions typically offer free accounts with no minimum balance requirements. Fees are generally absent from credit unions. Interest rates on savings, certificates of deposit, and some checking accounts often significantly exceed those offered by banks. In the same respect, interest charged for loans and credit are often lower. In fact, some credit unions are regulated such that the interest rate on loans and credit cards must not exceed a certain rate.</p>
<h2>Disadvantages of Credit Unions</h2>
<p><strong>Access to new technology is limited.</strong></p>
<p>There certainly are drawbacks to being a non-profit. Credit unions often do not have the funds to invest in technology. As a result, some credit unions' websites appear as if they belong in a bygone era. I've come across a few credit unions that still do not have a website that allows online account access. The level of technology varies greatly from one credit union to another, and some credit unions do have full-featured web-based technology, but it's worth auditioning a website before committing to a new credit union if accessibility is important to you.</p>
<p><strong>They have fewer ATMs.</strong></p>
<p>With a national bank, I know that I could travel anywhere in the country, and perhaps internationally, and find ATMs from my bank to avoid unnecessary fees. Credit unions are often community-based groups with no capital to install ATMs in convenient locations. Credit unions often get around this limitation by allowing you to use an existing network of ATMs, and if that ATM's owner charges you a fee for its use, the union will refund that fee on your statement. Be sure to read the fine print of your agreement to determine whether you will be able to find free ATMs near you.</p>
<p><strong>Membership is restricted.</strong></p>
<p>Credit unions are often focused on a certain community &mdash; most often either a geographic location or a profession. This has created the impression that it can be difficult to find a union for which you qualify. You might find that you're not eligible for the credit union that looks most appealing to you, but just about everyone can find a credit union to join. For example, Pentagon Federal Credit Union is generally only available to those who are U.S. government employees and a few other select groups, but anyone else can also qualify with a $15 donation to an organization.</p>
<h2>Additional Information</h2>
<p>Your deposits at credit unions are insured, just like your deposits at banks. The FDIC is the government organization that ensures that your bank balances are safe, even if the institution fails, up to a certain amount. Credit union balances are protected by the National Credit Union Association (NCUA), another government entity, for the same amounts. Always check to ensure your credit union is legitimate by verifying coverage through the <a href="http://ncua.gov">NCUA website</a>.</p>
<p>Like banks, credit unions often offer a full suite of financial products, such as credit cards, mortgages, debit cards, business loans, and checking accounts. Their non-profit status means that most do not have the funds available for major marketing and advertising campaigns, so it's difficult for the public to get the information needed to make an informed choice between banks and credit unions. It may require some research, but it is worth the potential savings and service. </p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/flexo">Flexo</a> of <a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-9">
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</div> </div><br/></br>Bankingbankscredit unionsThu, 10 Mar 2011 12:36:10 +0000Flexo501503 at http://www.wisebread.comAre You and Your Banker a Perfect Match?http://www.wisebread.com/small-business/are-you-and-your-banker-a-perfect-match
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<a href="http://www.openforum.com/idea-hub/topics/money/article/are-you-and-your-banker-a-perfect-match-kate-lister" target="_blank">http://www.openforum.com/idea-hub/topics/money/article/are-you-and-your-banker-a...</a> </div>
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<p>Imagine logging on to BankHarmony.com in search of the perfect banker and stumbling on this profile:</p>
<p><strong>The one thing I am passionate about is:<br />
</strong>Helping small business owners grow their businesses.</p>
<p><strong>The three things I&rsquo;m most thankful for are:</strong><br />
Customers, customers, and customers.</p>
<p><strong>My friends describe me as:</strong><br />
Generous, hard-working, flexible, creative, and a good listener.</p>
<p><strong>Three of my best skills are:</strong></p>
<ul>
<li>Being able to convince my colleagues to sign off on a loan I believe in.</li>
<li>Working with business owners to solve their problems.</li>
<li>Always going the extra mile for my customers.</li>
</ul>
<p><strong>I spend my leisure time:</strong><br />
Talking to business owners and learning what it&rsquo;s like to be them.</p>
<p><strong>I can&rsquo;t live without</strong>:<br />
Customers.</p>
<p><strong>The last book I enjoyed was:</strong><br />
<em><a href="http://findingmoneyadvice.com/">Finding Money: The Small Business Guide to Financing</a></em> by Kate Lister and Tom Harnish. It told the real story about how to find lenders and investors. (Disclosure: Kate is the author of this article.)</p>
<p>The traffic on this guy&rsquo;s profile would probably melt down BankHarmony&rsquo;s server.</p>
<p>Well, since BankHarmony doesn&rsquo;t exist, how do you find a good banker? Does size matter? How do you know they&rsquo;re not next on the list of government bailouts?</p>
<p><strong>Finding Your Dream Banker</strong></p>
<p>Accountants, attorneys, and other small-business professionals are a good source of advice. In fact, a referral from someone the bank knows and trusts may get you a little extra&nbsp;attention.</p>
<p>You might also want to:</p>
<ul>
<li>Ask for referrals from local businesses &mdash; preferably those in similar industries so the lender will already understand your business.<br />
&nbsp;</li>
<li>Order Dun &amp; Bradstreet reports on your&nbsp;competitors &mdash; their lender&rsquo;s names are often included in the report.<br />
&nbsp;</li>
<li>Pay a virtual or actual visit to your local SBA office and pick up a list of the most active SBA lender in your area.</li>
</ul>
<p><strong>Does Size Matter?</strong></p>
<p>Smaller regional banks often have the advantage of being light on their feet. Their loan approval process may be more streamlined than that of larger banks. In some cases, you&rsquo;ll even get to know the senior people behind their decisions. But don&rsquo;t expect their credit criteria to be lax &mdash; with smaller portfolios, they need to be extra careful about marginal deals and industry concentrations.</p>
<p>Before you decide on a small bank, ask whether they&rsquo;re likely to be gobbled up by a larger bank any time soon. Mergers and acquisitions often mean changes in personnel, services, pricing, and risk tolerance. Also, ask whether the bank will be able to handle your credit and non-credit needs as you grow. Depending on their size, they could have trouble accommodating a multi-million dollar loan without bringing in other bank lenders.</p>
<p>Large banks typically run their small-business lending on the branch or regional level. This allows them to operate more like neighborhood banks, but some are less interested in the small end of the market than others, and personnel turnover can be greater as their lenders have more upward mobility. Keep your ear to the street for who the friendly ones are.</p>
<p><strong>Are They Healthy?</strong></p>
<p>While the worst of the banking system meltdown is hopefully behind us, it&rsquo;s still a good idea to keep an eye on your bank&rsquo;s financial strength. Even though your deposits may be insured, if a bank goes under comes under the scrutiny of the federal regulators, &quot;it&quot; does roll down hill.&nbsp;</p>
<p>While it isn&rsquo;t BankHarmony.com, <a href="http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx?t=cb">BankRate.com</a> offers a Safe &amp; Sound&reg; rating system to help you avoid the real losers. Too bad the dating sites don&rsquo;t have that.</p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kate-lister">Kate Lister</a> of <a href="http://www.wisebread.com/small-business/are-you-and-your-banker-a-perfect-match">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-10">
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<span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span>
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</li>
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</div> </div><br/></br>BankingEntrepreneurshipSmall Business Resource Centerbanksfinancingsmall businesssmall business fundingMon, 06 Dec 2010 14:18:24 +0000Kate Lister338760 at http://www.wisebread.comThat Sneaky Bank Almost Got Me http://www.wisebread.com/that-sneaky-bank-almost-got-me
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<p>It was as much luck as anything else, but I just managed to avoid $30 in bank charges. It's a good example of rule number one for avoiding bank fees: pay attention.&nbsp;</p>
<p>I'd actually gotten the document with the details I needed to know a month ago. I'd even looked at it. Unfortunately, I missed one little detail that was tucked away in a large-format, eight-page, full-color, glossy brochure filled almost completely with details I <em>didn't</em> need to know &mdash; all the fees for all the services my bank provides, along with all the kinds of accounts they offer and the rules for all those accounts.</p>
<p>In a little box on page three was a little change: The minimum balance for money market accounts was now going to be $2,500 instead of the $1,500 it used to be. Fall below the minimum balance for even one day, and you get hit with a $15 change for the month. We have two of those accounts.</p>
<p>As I say, having missed this change when I got the brochure, it was mainly luck that I noticed it this morning. I was logging into my bank's website to transfer some money and clicked a link for &quot;changes taking effect today.&quot; Clicking that link downloaded a PDF of the same brochure I'd already looked at.</p>
<p>Since the transfers I was going to make this morning were to our money market accounts, I had money market accounts on my mind. So I took a minute to check the entry for money market accounts and noticed the change.</p>
<p>I spent several flustered minutes verifying that I could boost both accounts over $2,500 and still have enough cash to pay the bills that needed paying. I also transferred some money from elsewhere into our checking account, although it'll be a couple of days until it arrives.</p>
<p>As I said, it was as much luck as anything. I was lucky that I happened to log into our bank today, lucky that I noticed the link, lucky that I checked the entry on money market accounts, lucky that I noticed the change, and lucky that we had enough money on hand to cover the higher minimum.</p>
<p>But it was <a href="http://www.wisebread.com/lucky-trade-offs">more than <em>just</em> luck</a>. I run our finances with a <a href="http://www.wisebread.com/is-just-leaving-some-slack-better-than-a-plan">certain amount of slack</a>&nbsp;&mdash; I keep cash on hand specifically to handle situations like this. And, of course, I make a point of paying attention to that sort of thing, because paying attention is rule number one for <a href="http://www.wisebread.com/avoid-bank-fees">avoiding bank fees</a>.<a id="fck_paste_padding">﻿</a></p>
<p>&nbsp;</p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/that-sneaky-bank-almost-got-me">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-11">
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<span class="field-content"><a href="http://www.wisebread.com/my-bank-stole-my-grocery-money">My Bank Stole My Grocery Money</a></span>
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</div> </div><br/></br>BankingConsumer Affairsbank feesbanksfeesFri, 03 Dec 2010 13:00:06 +0000Philip Brewer359166 at http://www.wisebread.comA Mortgage Crisis Solutionhttp://www.wisebread.com/a-mortgage-crisis-solution
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<p>The latest twist in the ongoing saga of the mortgage crisis is that some fraction of the banks (and other owners of mortgages) didn't manage the paperwork well enough to be able to prove that they actually own each particular mortgage on each particular house. This is bad and sloppy &mdash; but it just might contain the seeds to a solution.</p>
<p>I've written before that the <a href="http://www.wisebread.com/root-cause-of-the-financial-crisis">root cause of the whole financial crisis</a> was not (as many have suggested) <strong>falling house prices</strong>; rather it was that <strong>housing prices got too high</strong>. If you think about it, the average house has to be affordable to the average household &mdash; who else is going to buy it? Once prices got too high, they had to fall. The government and many other institutions have done what they can to &quot;fix&quot; the problem of falling house prices, but that's an effort doomed to failure.</p>
<p>Although propping up housing prices is a losing effort, it's a popular one. Homeowners like it &mdash; and homeowners tend to be voters. Bankers also like it, and the government has been looking out for them as well, for several reasons: They're a source of political contributions; bank regulators are tasked with preserving the banks (which are endangered by collapsing housing prices); even legislators and regulators who are primarily looking out for the interests of ordinary people know that a collapsing financial sector would be hard on everyone &mdash; not just bankers.</p>
<p>The upshot has been that, despite the fact that a lot of people would like nothing better than to stick it to the banks, there's been very little effort to actually do so.</p>
<p>This latest twist in the crisis, though, may give us an opportunity to make the banks do the right thing.</p>
<h2>The Right Thing</h2>
<p>The right thing would be for the pain to fall where it belongs. A lot of failed mortgages have two culprits. It's as much the fault of the homeowner who bought a house they couldn't afford as it is the fault of the banker who lent them money they'd never be able to pay back. But I'm not too worried about sticking it to the poor homeowner &mdash; they're going to suffer plenty. My main concern is that helping them not cost the rest of us a lot more money.</p>
<p>So, to my mind, the right thing to have happen is for the <strong>banks who made stupid mortgages</strong> to be the ones who lose a lot of money. That's not a popular idea with bankers (who won't get nearly as much bonus money), and it's not a popular idea with bank regulators (who worry that banks that lose money might go under, dragging the rest of the financial system down with it). But the discovery of this record-keeping failure may have taken matters out of their hands.</p>
<p>Banks have been resisting efforts to write mortgages down to the value of the house, even when the only alternative is foreclosure. All those foreclosures are sad. They'd be sad even if the only people being foreclosed on were foolish people who bought houses they couldn't afford &mdash; I don't want to see even foolish people turned out of their home. But it's worse than that. Many innocent people are caught up in the housing catastrophe. (You can see the stories of some innocent victims in the comments on my post <a href="http://www.wisebread.com/six-options-if-youre-underwater-on-your-mortgage">Six Options if You're Underwater on Your Mortgage</a>.)</p>
<p>Up to now, though, there's been no pressure on banks to negotiate with homeowners to straighten things out. It's been cheaper to just foreclose, write off the loss, and go on.</p>
<p>But now that everyone knows that the banks had been cutting a lot of corners on the paperwork, the situation is very different. A few egregious mistakes aside, in most cases there really is a mortgage and the owner really hasn't been making his payments. But because of the mistakes, it now seems clear that the bankers will no longer be allowed to slide things through quick and easy. Instead, they're going to be forced to cross every t and dot every i.</p>
<p>This changes everything. In the cases where the record keeping has been very sloppy, it may be impossible to prove that the bank really owns the mortgage. Even where it's possible, it may be expensive. The banks, looking for the cheapest solution, just may find that it's cheaper to negotiate with the owner, and then write a new mortgage (and make darn sure that the paperwork for the new mortgage gets filed correctly). Even if they write the mortgage down to fair market value, they'll probably come out ahead of where they'd be if they had to foreclose, maintain the house for a while, and then sell it into a down housing market. (And they'll come out way ahead of where they'd be if the homeowner discovered that the bank can't prove that they've actually got a mortgage on the house at all.)</p>
<p>I see this as a win for everyone except the bankers. Homeowners get to stay in their house, with a new mortgage that reflects the actual value of the house. House prices fall to where they belong, making houses available to ordinary people &mdash; but they do so without the dislocations of so many foreclosures and forced sales. Bank profits will suffer, but in exchange the banks get a chance to clean up their paperwork &mdash; valid, provable mortgages that will stand up in court. Really, it's just the bankers &mdash; whose bonuses will be under considerable pressure until this is all worked through &mdash; who lose.</p>
<p>As a bonus: Going on the theory that there's considerable overlap between the banks most prone to screw up the paperwork and the banks most prone to lend money to people who couldn't pay it back &mdash; I'm thinking that the worst of the pain will tend to fall right where it's most deserved.</p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/a-mortgage-crisis-solution">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-12">
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</div> </div><br/></br>Financial NewsReal Estate and Housingbankscredit crisismortgagemortgage crisisrecessionTue, 12 Oct 2010 13:00:10 +0000Philip Brewer260745 at http://www.wisebread.comWhat is "Quantitative Easing" Anyway?http://www.wisebread.com/what-is-quantitative-easing-anyway
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<p>Recently, the news is abuzz with the term &quot;quantitative easing.&quot; What is it anyway and how does it affect you?</p>
<p>Quantitative easing is the act of central banks injecting the economy with cash in every conceivable way. In response to the financial collapse and the ensuing recession, central banks around the world used every tool at their disposal to increase the money supply. The US Federal Reserve has been extremely proactive in coming up with innovative solutions to increase the amount of capital available to banks, increase the money supply, and prevent <a href="http://www.wisebread.com/all-about-deflation">deflation</a>. These &quot;creative&quot; solutions fall under the umbrella term &quot;quantitative easing,&quot; although the US Federal Reserve has attempted to distinguish its strategy by phrasing it as &quot;credit easing.&quot;</p>
<p>Basically, quantitative easing is a monetary policy where central banks &quot;print&quot; money and introduce this newly created wealth into the money supply by purchasing securities on the open market. The banks from which these securities are purchased then have additional capital beyond their reserve requirements that they can loan, invest, or horde for themselves. Quantitative easing is usually employed when the federal funds rate is at or near 0% because there is no possible way to lower this rate.This results in the Federal Reserve expanding its balance sheet. In the past couple years, quantitative easing has often been in the news as the Federal Reserve agreed to buy billions of dollars worth of government bonds, mortgage bonds, and other securities.</p>
<p>The intended short-term result of quantitative easing is to increase the money supply and stimulate the economy. By purchasing government bonds on the open-market, the Federal Reserve can lower interest yields, which in turn lowers the interest on new debt, potentially encouraging companies and individuals to consume more credit and increase spending.</p>
<p>Conversely, quantitative easing lowers the deposit rate, or the rate banks pay depositors. A lower deposit rate reduces the benefits of holding savings, and encourages depositors to consume their deposits or seek other investments. The end result of quantitative easing is intended to benefit&nbsp; consumers. Decreased borrowing costs and an expanded money supply is supposed to increase demand and consumption. Once demand starts increasing, confidence should return to businesses and hiring will resume.</p>
<p>Modern economic theory argues that deflation is one of the worst possible economic outcomes and quantitative easing is supposed to prevent that. The idea being that if deflation takes hold and prices continue to fall, consumers will delay purchases, assuming that prices will be cheaper in the future. Delaying purchases decreases demand and leads the economy on a downward spiral. Furthermore, quantitative easing reduces the pressure on banks by increasing their available capital and increasing demand for loans.</p>
<p>The biggest risks associated with quantitative easing can occur when the folks in charge introduce too much cash with their policies and hyperinflation results. If there is a great increase in the money supply, then real goods, commodities, and services can drastically increase in price while savings and the value of the dollar are destroyed. Creditors will lose real return on their investments and the effect on the country's credit could be disastrous. These problems can be exacerbated by politicians who see government debt being purchased and use the opportunity to increase government spending without increasing taxes.</p>
<p>The bottom line is that quantitative easing can be a double-edged sword. In the case of Japan, quantitative easing did not work and deflation ensued for years.&nbsp; This could also happen in the United States. What do you think? Should central banks around the world continue their policy of quantitative easing to battle deflation and spur borrowing? Have you taken advantage of the lower interest rates?</p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/xin-lu">Xin Lu</a> of <a href="http://www.wisebread.com/what-is-quantitative-easing-anyway">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-13">
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</div> </div><br/></br>Financial Newsbanksfederal reservequantitative easingFri, 13 Aug 2010 14:00:08 +0000Xin Lu204446 at http://www.wisebread.comWhat Makes a Good Business Bank?http://www.wisebread.com/small-business/what-makes-a-good-business-bank
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<p>The bank you choose for your business accounts can make a major difference in how well your company operates. Your bank can control everything from how easy it is for you to get a business loan to how soon your customers' payments will actually be available for you to spend. Convenience is a factor of course, but there are considerations that may be more important than if your bank is just around the corner from your office.</p>
<p>There are certain services that may be necessary for you do carry out your day-to-day business. International wire transfers, online banking, payment processing and other services can certainly narrow down which banks you may consider. But many banks do have similar offerings these days, making it more important to find a good bank that will not only handle all of your needs, but that will also provide great service and reward your loyalty.</p>
<p>That may mean leaving the bank that handles your personal accounts or even moving an account you've already established. Many banks have very different ways of handling personal and business accounts and even the convenience of doing all of your banking in one location isn't enough to make up for other issues. Factors like how well-connected the bank is locally and the quality of their <a href="http://ad.doubleclick.net/clk;218395891;41475468;y?http://www201.americanexpress.com/sbsapp/FMACServlet?request_type=alternateChannels&amp;lpid=300&amp;openeep=17460&amp;ccsgeep=17460">customer service</a> for business accounts can truly influence your ability to grow your business in the years to come.</p>
<h2>The Local Connection</h2>
<p>Rachael Solem is the owner of Irving House at Harvard and has been in business for nearly twenty years. About ten years ago, she was looking for a mortgage and considered larger commercial banks.</p>
<blockquote>Our experience with banks as mortgage lenders has been that the larger banks do not care about or know about our business as much as the local banks do. After considerable research the last time we refinanced, we got the best deal from a local bank (Cambridge Trust), for both terms and interest rate. In addition, that same bank holds our operating accounts and does our merchant credit card processing. All has worked smoothly with them for years.</blockquote>
<p>Solem has built a personal connection with her bank over the years. She knows the president, along with several vice presidents and commercial lenders. That connection makes it easier for her to do business.</p>
<blockquote>The bank provided more flexibility with the terms of our current loan, and it is because my partners and I could be fairly candid with our lender about our goals for the business. They had to learn about our business &mdash; hospitality &mdash; which is a niche in the lending world because evaluating hotel properties is tricky. Now that they know us, I believe we can look to them as a lender to a buyer, if and when we decide to sell.</blockquote>
<p>It doesn't hurt that local banks can be crucial components of your community, offering intangible benefits on top of help managing your money. Solem is co-chair of Cambridge Local First, a local business association. She says:</p>
<blockquote>We are finding generally that local banks provide very competitive services and rates for many, many small businesses. In addition, they are very generous with sponsorships and donations to charity in our community.&hellip;Cambridge Trust has for at least 100 years provided the meeting space for the Harvard Square Business Association. It offers prime marketing space in its windows (in several branches, including the most popular Harvard Square office) to its depositors for no cost. The bank has for three years sponsored a fund raiser organized by Cambridge Local First, paying for the print materials necessary to promote the event so all proceeds can go to a local not-for-profit. When I first organized this fund raiser, it took a single, short phone call to the president of the bank to make this happen. Cambridge Trust is a regular, significant presence with community efforts everywhere I turn, from housing and food, to education, cultural endeavors, hospital wings. Google Cambridge Trust, they're everywhere in Cambridge good works.</blockquote>
<h2>Visit the Bank</h2>
<p>While it may be tempting to research the banks you're interested in and then make a decision from there, it's important to actually go in and visit those financial institutions that you're considering. Even if you plan to do most of your banking online, it's important to get a feel for the location. David Yale, the owner of A Healthy Relationship Press, went to each of the banks he was considering opening accounts with. Yale says:</p>
<blockquote>I visited several neighborhood banks unannounced. Most were impersonal, and one was totally disorganized and incompetent. As I waited to meet with a rep, I heard lots of customers complaining bitterly, and lots of reports about fraud. But at one bank, CapitolOne, I was greeted warmly, offered coffee or tea, introduced to the branch manager, and engaged in a conversation about what my business needed from the bank. All the other customer transactions I overheard during this discussion were positive. They were so clearly competent I decided to bank with them. It's been six months now, and I'm glad I made this choice.</blockquote>
<h2>Customer Loyalty</h2>
<p>When you find the right bank, sticking with them can make your life easier. Bob Liggett has been handling the banking for his consulting and training business with US Bank since 2002. Not only does the bank reward his loyalty, but the customer service manager has more than wowed Liggett:</p>
<blockquote>She knows me and my needs, and is always willing to take whatever time it takes to resolve my questions (and never makes me feel dumb!) &hellip;When Karen transferred to another branch location, I followed her there and drive the extra miles gladly.</blockquote>
<p>That sort of connection can translate to better terms for loans, waived fees and other rewards for your willingness to stay with the bank. It can also mean that if something goes wrong, no matter whose fault it is, your bank is likely to take the steps necessary to get your account straightened out. Customer loyalty can be the key for a small business to get treated like a big company that may bring more business to the bank.</p>
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</div> </div><br/></br>BankingEntrepreneurshipSmall Business Resource Centerbankssmall businessThu, 06 May 2010 21:49:46 +0000Thursday Bram40791 at http://www.wisebread.comYou did WHAT with my SSN?http://www.wisebread.com/you-did-what-with-my-ssn
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<p>Like many idiots, I bought my house at the peak of the real estate bubble, locking in a 30-year fixed rate mortgage at 6.375%. With escrow and taxes going up every year, and income going down (and no sign of a seller's market on the horizon), I decided recently that I HAD to refinance.</p>
<p>I looked at some online quotes and called my local credit union to see what kind of rates were being offered in general (nothing worth my time). Since I knew my combined credit and payment history put me in fairly&nbsp;good standing, I figured that my current mortgage holder, US Bank,&nbsp;would want a shot at keeping me as a customer. Besides, my local branch employees were known for their stellar service and since I already had a linked checking account set up with direct deposit and everything, staying with the same bank would save me the headache of rearranging everything with the HR department again.</p>
<p>I called the local branch and got the number for their mortgage rep, someone who had been highly recommended by an assistant manager. The mortgage rep, who I will call &quot;Linda&quot; for the sake of this story, spent two days a week at my branch and serviced other branches on other days.</p>
<p>I have to admit, when I first called Linda, I was impressed with her. She was efficient, calm, collected, and totally in control; she had the ultimate phone voice. She understood the bits and pieces of mortgages in a way that I will never hope to. She asked about my current rate, payments, goals, income; all of this was very standard, but her manner was so with-it that I felt like I was in good hands.</p>
<p>And then she asked me what my mortgage number was.</p>
<p>This was not an unreasonable question, and any person who is capable of reciting their own phone number without checking their address book would probably have had no problem providing this info. As for me, well, I can only remember the first three digits of my mortgage number on a good day. Scrambling, I tried to log into my online banking account to refer to the linked mortgage info, only to remember that I had managed to lock myself out of the online account the day before, entering the password incorrectly many times.</p>
<p>&quot;I'm sorry, I don't have the number on me,&quot; I stammered.</p>
<p>&quot;That's OK,&quot; said Linda, &quot;I can look it up using your social security number. The bank database has all of your account info.&quot;</p>
<p>It should be noted that I have a very active imagination, so at this point, I'm picturing Linda sitting behind a large desk in her downtown office, wearing a headset, tapping my SSN into her sleek laptop, which is securely logged into the banking system via ultra-mega locked-down VPN. I also imagine that Linda&nbsp;is brunette. Please don't ask me why. These are details that I literally picture in my head, for no good reason at all.</p>
<p>I&nbsp;half-whispered my social security number over the phone line, always nervous that someone <strong>bad </strong>will overhear. Linda explained that she would have to send away for a bunch of data from headquarters, but that the mortgage application is usually returned within 24 hours, and that she would call me back early in the next week to schedule an appointment to go over the various mortgage options. I felt relieved. The burden of my mortgage has really been getting to me, and I'm looking forward to the possibility of any financial relief.</p>
<p>Early the next week, I&nbsp;found myself in the bank, making some deposits, and I noticed that Linda's usually-empty desk is occupied with someone who I assumed must be Linda herself. Having not heard back from her yet, I decided that, for once in my life, I was going to be proactive. I walked up to her desk, verified that her name tag read &quot;Linda&quot;, and waited for her to finish doing whatever it was she was doing on her (sleekish) laptop. She tapped away, glancing at me as though my presence was not appreciated.</p>
<p>Linda is actually a&nbsp;bottle blond.</p>
<p>&quot;Hi,&quot; I said, holding out my hand, &quot;I'm Andrea Dickson, and we spoke on the phone last week about refinancing my mortgage. I was wondering if you had a chance to look at your schedule? Maybe we can set something up while I am here.&quot; I am amazed that I say the entire sentence without tripping over my words, as is my tendency.</p>
<p>&quot;Oh,&quot; replied Linda, definitely looking less-than-thrilled, &quot;I didn't get your mortgage number from you, so I was unable to retrieve your information. You said you were going to call back, but you never did.&quot;</p>
<p>I felt my head tilting to the side in the confused manner used by puppies who are encountering other animals for the first time. I reached into my purse, as though my mortgage number is simply floating around in there.</p>
<p>&quot;No,&quot; I said, remembering our conversation, &quot;I gave you my social security number, and you said that you were going to look up my mortgage info.&quot;</p>
<p>&quot;Oh, I did say that, that's right.&quot; It was&nbsp;clear to me immediately that she hadn't even started the process. She reached into her bag, pulling out what, in my imagination, was surely going to be a leather-bound ledger book, with carefully written data about me and what I had told her thus far about my mortgage. Navy leather, is what I figured.</p>
<p>Not... a lined spiral-bound notebook with... were those <em>doodles</em>?</p>
<p>Linda turned to the back of the notebook, past pages and pages of notes written in large, blocky letters in purple ink, and there on the last page&nbsp;is &quot;my&quot; name, &quot;ANDREA&nbsp;DIXON&quot; along with my social security number, next to a drawing of what Linda apparently thinks a starfish looks like.</p>
<p>It didn't actually occur to me that Linda was going to be writing down my social security information to use at a later time.&nbsp;But <strong>something </strong>about seeing my personal data in a Gregg Rule Stenobook, alongside the personal information of&nbsp;other customers, seemed galling.</p>
<p>I didn't know what to say. While I&nbsp;hovered, Linda assured me that the information she was sending away for would be back within 24 hours. I contemplated making a scene, but because I am a wuss, I left the bank after pointing out that she had misspelled my name. Linda gave me a look that indicated that she didn't care how I spelled my name. I&nbsp;could tell that this was the beginning of a wonderful business relationship.</p>
<p>Back at my desk, pondering the issue, I decided to call Linda and ask if I could have that piece of paper with my data on it.</p>
<p><em>I hate confronting people. I hate confronting people. </em>This was my mantra as I waited for Linda to pick up her line.</p>
<p>Linda answered the phone and I explained to her that I felt a little weird about my data, especially my full social security number, being written out in a notebook like that. I told her that I&nbsp;felt that the information was unsecure, and that if I had known that she was going to be writing it down, rather than entering it into a encrypted computer database, I would have called her back with my mortgage number once I located it.</p>
<p>Linda's tone was distinctly irritated. Who was I to question her methods? &quot;I can assure you that your information is safe with me. I never leave my notebook lying around. That's illegal.&quot;</p>
<p>&quot;Well,&quot; I said, struggling to be polite, &quot;That's good. But I'd still feel more comfortable if you could give me that sheet of paper so I could shred it.&quot;</p>
<p>&quot;I have other customer data on the page besides yours,&quot; snapped Linda, &quot;Customer information that is <strong>as valuable and as important as yours is</strong>.&quot; This is clearly meant to comfort me; that Linda is being as&nbsp;irresponsible with her other customers' data as she is with mine, that all of us are at risk.</p>
<p>&quot;I honestly don't know what to tell you to make you feel better. I've always kept records like this and I've never lost anyone's information. My briefcase has a lock.&quot;</p>
<p>This is good news, because no one has EVER successfully stolen a locked briefcase. It's a well-known fact that all locked briefcases immediately detonate upon being fondled by sinister hands.</p>
<p>&quot;I carry files all over the place that have more customer data than I have for you. I have mortgage application files on me at all times.&quot; This is where Linda wants me to know that my piddling little social security number is of no great importance compared to other customers, who have handed over addresses, phone number, spouse names.</p>
<p>&quot;I'm really uncomfortable with this,&quot; I say.</p>
<p>&quot;Well, I&nbsp;can't give you the piece of paper. I can't give <em><strong>you </strong></em>another customer's data. If it makes you <em>so uncomfortable</em>, I can always cross out your social security number with a black marker, so if I lose my notebook, no one can read it.&quot;</p>
<p>This is a time-tested method of securing data that has NEVER failed. Now I can rest easy, knowing that should Linda misplace the notebook, which will not happen because it hasn't happened yet, no one will EVER be able to flip the page over and read the imprint of my social security number on the backside of the page.</p>
<p>The thing is, I'm sure Linda is a trustworthy employee. I doubt she runs around scrawling my SSN and name on bathroom stalls, and she is doubtlessly fairly careful with her notebook. But Linda could be a trained CIA killer who would rather die than have her personal notebook stolen and still manage to have the darn thing stolen. A briefcase full of files? Easily stolen. A steno book? Much. More. Easily. Stolen.</p>
<p>Wondering if perhaps I was overreacting, I called another branch of US Bank and inquired if it was common practice to write down customer's data in a notebook. Startled, the manager told me that while it was part of a mortgage professional's job to carry files that contained data, such data was not often stored in a notebook. When confonted with this information, my own branch's assistant manager assured me that he uses a notepad to write down all kinds of data from customers, from account numbers to social security numbers, and that he is <em>very careful with how that data is handled</em>. He didn't tell me how these notebooks are disposed of.</p>
<p>This doesn't sit right with me, but I am uncertain as to what exactly it is about the situation that I find so upsetting. Is it that Linda is extremely unfriendly and I am overly sensitive? I'm not even sure if any laws are being broken by Linda as a bank employee. I imagine that if a bank teller at the same institution wrote down my social security number on a piece of paper for the purposes of helping me with something,&nbsp;and then took the paper home, they would be breaking more than one law.&nbsp;</p>
<p>Truth be told, I can't find any specific laws relating to the banking sector and personal security. HIPAA might protect our personal data as it relates to our health, but the only federal law that might pertain to such activities isn't even a law yet, but still a <a href="http://www.govtrack.us/congress/bill.xpd?bill=s111-1490">bill being reviewed in the Senate</a>. So much modern legislation deals with protecting our identities and information from digital breach, but what can we do to prevent employees from writing our social security numbers in giant purple in a notebook while running errands?&nbsp;I doubt Linda has a separate book with back-up notes that she can use to notify me if she DOES lose the notebook and my personal data falls into someone's less-trustworthy hands.</p>
<p>Here's the thing: I don't really know the legal implications behind this. The way that Linda, and apparently the other employees at my bank, are treating customer data may be well within the legal confines of their profession. But it shouldn't be. So much of the laws that are passed in this country are reactive. They deal with how to let customers know once their data has been stolen, usually electronically. I'd like to know what my bank is doing to keep my data FROM being stolen, and &quot;we've never had a problem so far&quot; is not a good method for ensuring data security.</p>
<p>The lesson, of course, is to never give out your social security number unless you absolutely have to, and even then, see if you can push back a bit. Because you simply never know.</p>
<p><em>What would you do in my situation? Do you think the measures undertaken here are secure enough for YOUR data?</em></p>
<br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/andrea-karim">Andrea Karim</a> of <a href="http://www.wisebread.com/you-did-what-with-my-ssn">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-15">
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</div> </div><br/></br>Consumer Affairsbanking securitybanksdata securityfinancial data securitymortgagepersonal dataThu, 14 Jan 2010 14:00:32 +0000Andrea Karim4620 at http://www.wisebread.com